Application of Zero Rate
16/05/1994
Query
A UK company with no presence in Ireland sends a PBX system to a factory in this State. A Dublin company supplies a component to the foreign company which is delivered directly to the factory in the State. VAT at 21% would normally apply to such a supply. The component is soldered into a finished product which is sent back to the UK. Can the zero-rate apply?
Decision
Provided the supplier has evidence that the goods have been transferred to a VAT-registered customer in another Member State then the zero rate can apply.
Value Added Tax
Sections 2 and 11, Value Added Tax Act, 1972
Origin: Indirect Taxes Policy and Legislation
File ref:A/228 (B)